- Dorothy Achieng Okoth¹, Dr. Lawrence Odollo² Dr. Sarah Kimani³
- School of Business & Economics Catholic University of Eastern Africa, Nairobi, Kenya
- FAR Journal of Multidisciplinary Studies (FARJMS)
- DOI
This study investigated the effect of Knowledge Management on BPO firms’ performance in Nairobi City County, Kenya through strategic technological partnerships. In line with the Resource-Based View, Knowledge Management operationalized through knowledge acquisition, sharing, and storage and retrieval was treated as the focal independent variable, with Information Exchange, Business Support and Technology Transfer entered as statistical controls so that KM’s distinct contribution to performance could be isolated. All four dimensions were found to influence performance of Business Process Outsourcing Firms at different statistical levels. Explanatory research design was used and 384 respondents (from a sample of 96 BPO firms selected from a population of 125 BPO firms in Nairobi City County) were targeted. A total of 307 questionnaires were returned (response rate = 79.9%). Descriptive statistics, Pearson correlation and multiple linear regression analysis were used to analyze data. Knowledge Management had composite mean of 3.76 and strongly and significantly correlated with BPO performance (r = .702, p < .01). Knowledge Management was found to be the strongest and most statistically significant predictor of performance (β = .327, p < .001) in a model that explained 61.0% of variance in performance (R² = .610, p < .001). These results highlight KM as an organizational capability that determines how much BPO firms get value from strategic technological partnerships.
